IF you are a landlord then chances are you will need landlord insurance. The only reasons you won’t need it are because it is already supplied through a management contract (leasehold properties mainly) or you are so rich you can afford to self insure the property with your spare cash.
If you pay a management fee to the freeholder/property management company, then it is their responsibility to ensure the property is insured. Check with them and get copies of the insurance schedule.
If you own the property outright, then you can choose to insure it or not. If you can easily afford the rebuild and possible liability damages, which can run into £millions from even the smallest property, then you don’t need to read further. If you want to protect yourself against potentially massive costs then landlord insurance is a must.
Having a mortgage means you need landlord insurance
Anyone that owns a let property with a mortgage is required to have landlord insurance as part of the terms of the loan. If you don’t have landlord insurance then you could have the loan called in at any time and lose the property.
Without landlord insurance you are exposed to serious financial risk.
Landlord insurance is different to home insurance
Landlord insurance is not the same as standard residential home insurance. Standard home insurance will not cover a rental property. If you try to make a claim on standard home insurance for a let property it will be refused and you will have to pay for the repairs/damages yourself.
Landlord insurance is usually buildings insurance as most properties are let unfurnished. It will pay for any damages to the structure of the property. In this way it is very similar to your residential home insurance, but it is a commercial product that is designed only for let properties.
Flood, subsidence and unoccupied landlord insurance
Special risks such as flood risk or subsidence may be required on your landlord insurance. These shouldn’t scare you as they are available and if included will protect you financially against these disasters.
Many landlords will need unoccupied insurance if they are renovating, decorating or experiencing a long void period waiting for new tenants. This is available and if you already have a landlord insurance policy in place, you can check it as most will include vacancy for up to 30-days or sometimes 45-days. You can easily transfer across to landlord insurance once tenanted.
Landlord contents insurance will protect your belongings inside the property (sofas, TVs, tables, beds etc). If you do not have your own buildings insurance then many landlords buy contents insurance to access public liability cover so if anyone hurts themselves on the property they have access to financial protection.
How to buy landlord insurance
The Property Insurer partners with the best landlord insurance providers in the UK. They can walk you through any requirement and then offer the best rates possible – their aim is to save you money on all sorts of landlord insurance. And if you need rent guarantee or landlords emergency cover as well, then they can provide at excellent rates with superb coverage.